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Commentary on Rightmove’s UK Residential Rent Data

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Real estate analyst Iwona Hovenko comments on data from Rightmove which shows rents outside London have reached a record £1,190 following successive quarterly increases in landlords’ asking prices since 2019.

Unfortunately for tenants in the United Kingdom, the rental supply-demand imbalance is only likely to worsen in the near-term future, as smaller private landlords exit the sector due to high taxation, interest rates and the steep costs to bring their properties to at least EPC band C in the next few years.

Shortage of qualified labour and the still-high prices of materials may make that job even tougher. Moreover, the same factors are also hitting the supply of new homes. 

[T]he ranks of renters may continue expanding due to potential buyers being priced out by the high interest rates, lower mortgage affordability, as well as squeezed disposable incomes.

Meanwhile – although housing market remains relatively resilient – the ranks of renters may continue expanding due to potential buyers being priced out by the high interest rates, lower mortgage affordability, as well as squeezed disposable incomes.

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Some ‘would-be’ buyers may have also shelved their purchase plans while waiting for house prices to fall.

All of these factors may be exacerbating demand for rental housing at a time when supply is likely to shrink further.

Iwona Hovenko

Iwona Hovenko is a Senior Equity Research Analyst for Housing, Real Estate and Construction with Bloomberg Intelligence (BI). BI research delivers an independent perspective providing interactive data and research across industries and global markets, plus insights into company fundamentals. The BI team of 400 research professionals are here to help clients make more informed decisions in the rapidly moving investment landscape.

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  • Iwona Hovenko

    Iwona Hovenko is a Senior Equity Research Analyst for Housing, Real Estate and Construction with Bloomberg Intelligence (BI). BI research delivers an independent perspective providing interactive data and research across industries and global markets, plus insights into company fundamentals. The BI team of 400 research professionals are here to help clients make more informed decisions in the rapidly moving investment landscape.

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